SCIHO Awarded $500,000 Grant for the Development of Switchyard Apartments

We are excited to announce that South Central Indiana Housing Opportunities, in partnership with BloomBank, has been awarded $500,000 in competitive Affordable Housing Program grant funds from the Federal Home Loan Bank of Indianapolis for the development of Switchyard Apartments. This is an essential piece of financing for the $1.2 million project, which will be Phase 1 of a total development of 16 affordable apartments at 1901 S. Rogers adjacent to the new city park now under development.

The Federal Home Loan Bank of Indianapolis reported receiving 47 applications, of which 25 projects were awarded grant funding. More information about this round is available on their website.

We are grateful for the leadership from Mayor Hamilton’s office to initiate the donation of this land for the development of affordable housing and deeply appreciate the collaboration from city staff and support from community partners to create a competitive proposal.

The high cost of land is one reason that housing is often expensive in the City of Bloomington. The city’s dedication of this land for affordable housing development makes Switchyard Apartments, feasible—rather than impossible.

Cooperation with the City of Bloomington

Since the City proposed the allocation of this site for affordable housing development in March, SCIHO has had the pleasure of working with Doris Sims, director of Housing and Neighborhood Development and Paula McDevitt, director of Parks and Recreation, to consider how to make this idea a reality. Their collaboration and support has been invaluable to navigate the admittedly complex process of affordable housing development.

Switchyard Apartments

Affordable housing development demands attention to design, affordability, finance, and community engagement.

Design

Our proposal is to develop Switchyard Apartments in two phases of eight units each. We have worked with Springpoint Architects to produce a preliminary site plan for the project, with a community room, laundry, parking, and a courtyard with a community garden between the East and West buildings.

Affordability

With 100 percent affordable units, rents for the proposed project will be targeted for low-income households. However, truly affordable housing is not only about cost—it is also about location and proximity to amenities. Simply put, this site is an outstanding location. Not only does it share a backyard with Switchyard Park, which will soon be the newest gem of among our city’s parks, but it is in a walkable location on a bus line and near the B-line Trail, with easy access to employment, groceries, educational resources, and more.

Financing

Affordable housing development always requires multiple layers of finance, and this $1.2 million project is no different. In addition to the $500,000 in gap funding awarded from the FHLBI’s Affordable Housing Program, we are pleased to have a $400,000 loan commitment from BloomBank for Switchyard Apartments. The City is reviewing a commitment of up to $200,000 to assist in the construction of the units through HOME Investment Partnership funding, including CHDO set-aside funds for such projects. SCIHO has also applied for funds from the city’s Affordable Housing Development Fund.

Community Engagement

One of our next big efforts on this project is community engagement—particularly with neighbors and low-income households. We are seeking feedback from low-income potential residents each stage of the project development, including project concept, site location, design and property management. This input is extremely important to ensure that the project best meets the needs of potential residents as well as the neighborhood. We will invite neighbors and potential residents to participate in community meetings and complete surveys.

We have also initiated prospective partnerships that can support residents’ financial empowerment, with local institutions such as MCCSC’s Adult Education program, Monroe County Head Start, Old National Bank, WorkOne, and Mother Hubbard’s Cupboard. In addition, we have committed to a partnership with LIFEDesigns to designate several units for people with disabilities.

We are grateful to have gotten off to a strong start in collaboration with the City. When Switchyard Apartments is completed we will have not only 16 new apartments for low-income households—but a new and replicable model for affordable housing production in the City of Bloomington.